tag:blogger.com,1999:blog-5465015914589377788.post8613496411379576004..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Interest on a Car LeaseMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5465015914589377788.post-27905238406961173542022-05-20T10:08:58.119-04:002022-05-20T10:08:58.119-04:00An unbeatable argument!An unbeatable argument!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-56997806105109420602022-05-19T20:45:50.948-04:002022-05-19T20:45:50.948-04:00By that logic, it seems that it would cost the sam...By that logic, it seems that it would cost the same to lease a brand new vehicle worth $30,000 that depreciates to $15,000 as it would a used vehicle worth $15,000 that depreciates to $0.Jnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-79434420954485470782022-05-19T09:16:38.541-04:002022-05-19T09:16:38.541-04:00Hi Sebastien,
I agree that it makes sense to char...Hi Sebastien,<br /><br />I agree that it makes sense to charge interest on the entire car. However, it might be possible to tinker with the sale price or residual value to compensate for a nonsensical interest calculation. This is the only way I can make this make any sense (other than Diaz simply being wrong). Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-1799715686291172982022-05-19T07:52:30.373-04:002022-05-19T07:52:30.373-04:00You're showing much more diplomacy than I woul...You're showing much more diplomacy than I would have, haha. It makes zero sense to me why a car company would charge interest on only the non-residual portion... After all, they are giving you the entire asset for that time, so that's what you're borrowing and paying interest on. I'd change my view when they start leasing fractions of a car! (I'll need at least three wheels, I suppose).Sebastien Benoithttps://www.blogger.com/profile/01039283591320845645noreply@blogger.com